Children grilling the Chancellor on television. Photo: Getty
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Autumn Statement: the prospect for children’s benefits looks no brighter

Since 2012, we haven’t seen a solitary reference to child poverty in any budget or Autumn Statement, and poverty rates are rising.

Today’s the day that speculation about the content of the Autumn Statement reaches its peak. Will the Chancellor announce new spending cuts in light of lower-than-expected tax receipts? Or conversely, be in the market for some pre-election giveaways? Trails apart, we don’t yet know for sure what will be in the speech at 12.30pm tomorrow. But we have a pretty good idea what won’t.

The Autumn Statement is conventionally when the government announces how it will maintain the value of benefits for the following fiscal year. But in 2014, there’s little to say on the topic. Sheltered by the terms of the triple lock, the basic state pension will automatically be uprated by average earnings, prices or a nominal 2.5 per cent, whichever is higher. This year it is the last, which gives a happy uplift to the value of pensions over and above the cost of living. In stark contrast, the value of children’s benefits is locked down, this time by a decision at Autumn Statement 2012 to uprate them at a sub-inflation 1 per cent for the following three years.

Actually, it’s even worse than that. Child benefit has suffered over the course of this parliament not just from the 2012 decision to increase it slower than inflation, but also by a three-year freeze instituted when the coalition took power. The benefit has lost over 13 per cent of its real value as a result of uprating decisions taken since 2010. But those with good memories will recall that the government provided a reason for cutting this vital and popular benefit.

As the government said at the time, “We will freeze child benefit to help fund significant above indexation increases in the child tax credit . . . This means that support will be better targeted at low-income families with children and that this budget will have no measurable impact on child poverty”.

So how has that worked in practice? In 2011, low income families did do well when the children’s element of child tax credit (CTC) was increased in line with prices, and given a further healthy boost of £180 a year. Child poverty actually went down that year. By 2012, the commitment to help low-income families was weakened: CTC was increased by inflation, but the Chancellor then reneged on his promise of a further significant increase above prices. That year, child poverty rates stayed the same. But by 2013, any idea of protecting poorer children from austerity had left the Treasury and shut the door: CTC could languish with 1 per cent uprating for the following three years along with the rest of them. Surprise, surprise: child poverty rates are now on the rise.

Academics have long pointed out that the extent to which we protect the value of children’s benefits is intimately linked with the rate of child poverty. This was something the Chancellor acknowledged in 2010, but has remained tight-lipped about ever since. In fact, since 2012 we haven’t seen a solitary reference to child poverty in any budget or Autumn Statement, nor any analysis in Treasury documents as to the poverty effects of spending decisions.  This goes beyond being simply depressing. When the government has an enduring legal duty to take action to reduce child poverty to negligible levels by 2020, it begins to look more like an act of avoidance.

Whatever next May brings, the prospect for children’s benefits looks no brighter. The Conservatives plan to freeze all support to families for another two years if returned to power; a Labour government would uprate child benefit at only 1 per cent for the same time period; and the Lib Dems have intimated that uprating decisions will be taken on an ad hoc basis as finances allow. The stable and poverty-reducing settlement the triple lock provides pensioners may be an unimaginable dream for children in the foreseeable future.

Uprating may seem tedious, but in truth it matters a lot. When children’s benefits are properly uprated, families don’t drift away from the mainstream; if their value withers away, we cut our children loose. When the Chancellor steps up to the despatch box tomorrow, we will all listen hard to every word he has to say. But spare a thought, too, for the issue on which he stays silent.

Lindsay Judge is Senior Policy and Research officer at the Child Poverty Action Group

Lindsay Judge is senior policy and research officer for the Child Poverty Action Group.

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The rise of the green mayor – Sadiq Khan and the politics of clean energy

At an event at Tate Modern, Sadiq Khan pledged to clean up London's act.

On Thursday night, deep in the bowls of Tate Modern’s turbine hall, London Mayor Sadiq Khan renewed his promise to make the capital a world leader in clean energy and air. Yet his focus was as much on people as power plants – in particular, the need for local authorities to lead where central governments will not.

Khan was there to introduce the screening of a new documentary, From the Ashes, about the demise of the American coal industry. As he noted, Britain continues to battle against the legacy of fossil fuels: “In London today we burn very little coal but we are facing new air pollution challenges brought about for different reasons." 

At a time when the world's leaders are struggling to keep international agreements on climate change afloat, what can mayors do? Khan has pledged to buy only hybrid and zero-emissions buses from next year, and is working towards London becoming a zero carbon city.

Khan has, of course, also gained heroic status for being a bête noire of climate-change-denier-in-chief Donald Trump. On the US president's withdrawal from the Paris Agreement, Khan quipped: “If only he had withdrawn from Twitter.” He had more favourable things to say about the former mayor of New York and climate change activist Michael Bloomberg, who Khan said hailed from “the second greatest city in the world.”

Yet behind his humour was a serious point. Local authorities are having to pick up where both countries' central governments are leaving a void – in improving our air and supporting renewable technology and jobs. Most concerning of all, perhaps, is the way that interest groups representing business are slashing away at the regulations which protect public health, and claiming it as a virtue.

In the UK, documents leaked to Greenpeace’s energy desk show that a government-backed initiative considered proposals for reducing EU rules on fire-safety on the very day of the Grenfell Tower fire. The director of this Red Tape Initiative, Nick Tyrone, told the Guardian that these proposals were rejected. Yet government attempts to water down other EU regulations, such as the energy efficiency directive, still stand.

In America, this blame-game is even more highly charged. Republicans have sworn to replace what they describe as Obama’s “war on coal” with a war on regulation. “I am taking historic steps to lift the restrictions on American energy, to reverse government intrusion, and to cancel job-killing regulations,” Trump announced in March. While he has vowed “to promote clean air and clear water,” he has almost simultaneously signed an order to unravel the Clean Water Rule.

This rhetoric is hurting the very people it claims to protect: miners. From the Ashes shows the many ways that the industry harms wider public health, from water contamination, to air pollution. It also makes a strong case that the American coal industry is in terminal decline, regardless of possibile interventions from government or carbon capture.

Charities like Bloomberg can only do so much to pick up the pieces. The foundation, which helped fund the film, now not only helps support job training programs in coal communities after the Trump administration pulled their funding, but in recent weeks it also promised $15m to UN efforts to tackle climate change – again to help cover Trump's withdrawal from Paris Agreement. “I'm a bit worried about how many cards we're going to have to keep adding to the end of the film”, joked Antha Williams, a Bloomberg representative at the screening, with gallows humour.

Hope also lies with local governments and mayors. The publication of the mayor’s own environment strategy is coming “soon”. Speaking in panel discussion after the film, his deputy mayor for environment and energy, Shirley Rodrigues, described the move to a cleaner future as "an inevitable transition".

Confronting the troubled legacies of our fossil fuel past will not be easy. "We have our own experiences here of our coal mining communities being devastated by the closure of their mines," said Khan. But clean air begins with clean politics; maintaining old ways at the price of health is not one any government must pay. 

'From The Ashes' will premiere on National Geograhpic in the United Kingdom at 9pm on Tuesday, June 27th.

India Bourke is an environment writer and editorial assistant at the New Statesman.

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